Take advantage of tax perks with a Foresters Stocks & Shares ISA
Monday, March 18, 2013
Savings rates on Cash ISAs are now so low that the return on your money is struggling to keep pace with inflation. This means that even with the tax-efficient allowance given to savers, if you put your money into a Cash ISA, it is still likely to lose some of its value in real terms. Savers can look at investing in the stock market as an alternative to provide them with the possibility of growth in their Individual Savings Accounts (ISA).
Cash ISAs are an ideal place for short to medium savings, such as saving towards a holiday or a deposit on a car and as they operate like a normal savings account, your money is easily accessible so you can withdraw it when you need it. In contrast a Stocks & Shares ISA is a valuable vehicle for those with longer-term horizons who are willing to take more of a risk. They can offer the potential of higher returns, however unlike Cash ISAs they operate as an investment and can fall in value as well as rise, so you could get back less than you invested. The Foresters Stocks & Shares With Profits ISA aims to provide growth over five years or more, plus annual bonuses and a final bonus may be added depending on how much profit the fund makes, although the addition of bonuses cannot be guaranteed.
Investors can put more money into a Stocks & Shares ISA than into a Cash ISA while still taking advantage of the tax perks. Investors in a Foresters ISA can contribute regular amounts from £50 per month, invest lump sums of a minimum of £250 or a combination of both to take their total investment to the current maximum £11,280 (£11,520 from 6 April for the 2013/2014 tax year) for a stocks & shares ISA. In addition, anyone taking out an ISA with Foresters is automatically eligible for its member benefits package which includes optical and dental grants, help with writing a will and discounts from high street retailers.
Neil Armitage, Marketing Director at Foresters Friendly Society said: "As we approach the deadline for ISA investments members should remember that if you don't use your allowance it cannot be carried forward into the next tax year. In today's low interest rate, high inflation environment, it makes sense to use all the tax breaks that are available. ISAs are a great way to put a little bit aside each month which over time can build into a valuable nest egg." Tax rules may change in the future and depend on individual circumstances.
You can find out more about Foresters Friendly Society's Stocks & Shares With Profits ISA here.